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As your Chicagoland real estate agent Michael LaFido, I want to be your resource for all things real estate. Whether you are buying, selling, or investing in real estate, I am here to guide you through the process. Subscribe to this blog to learn all of the latest news from our local market and receive expert tips for buying or selling a home.

Comparing Our Market Today With the Real Estate Peak In 2006

There is a lot of negativity about Chicago’s real estate market in the media, so I’d like to compare our market today with the numbers from its peak 10 years ago.

As you may already know, real estate prices in the Chicagoland market peaked about 10 years ago in September of 2006. How does our current market compare to the market peak from 10 years ago?

Before I discuss this, I just wanted to mention that I recently attended an international conference in Washington, D.C., and talked to a lot of Realtors from around the world who had nothing but good things to say about the Chicagoland market. This is a relief because although we all know how strong our market is, there are a lot of negative stories about it in the media, like, for example, that more millionaires left the Chicagoland area than anywhere else in the country in 2015. It’s great news to hear that even agents from around the globe know what a fantastic market we have!

To recap, although home prices peaked in September of 2006, they hit rock bottom in March 2012. You can take a closer look at this survey that Crain’s Chicago Business put together, consisting of 163 zip codes in the Chicagoland area (it’s important to note that DuPage County was not included) to get a closer look at the numbers that I’m discussing.

Unfortunately, out of these 163 zip codes, over half of those home prices are still down 15% or more from the peak in 2006. If you think that’s bad, about 15% of those zip codes have home prices that are still down 30% or more since 10 years ago. We’re beginning to bounce back, but we’re still not in a great situation. Because we have so much more supply than we do demand, we’re still very much in a buyer’s market.

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Even though our market is still not where it was during the peak, the market is improving.

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The good news? It’s not the market; it’s the marketing. For example, in Wheaton last year, there were four properties that sold above $1 million on the MLS, but this year, that number doubled: there have been nine properties that have sold for over $1 million in 2016. In addition, last year in Chicagoland, only two homes sold above $7 million, but this year we’ve seen six.

The bottom line is that, even though our market is still not where it was at during the peak, the market is improving. If you’re thinking about listing your home for sale, now is the time to prepare it for the market. If you have any questions about listing your Chicagoland home for sale or buying one, feel free to give me a call or send me an email. I’d be happy to get you moving in the right direction!